2026 Crisis Worsens, Business Owners Admit They Are Overwhelmed

The explosion of artificial intelligence (AI) technology has caused global demand for advanced chips to continue to soar. However, Taiwan Semiconductor Manufacturing Co. (TSMC) has admitted that its production capacity is still unable to keep pace with market needs, a condition expected to persist for several years to come. TSMC CEO C.C. Wei stated that the company’s global chip supply will continue to lag behind the demand driven by AI development. According to him, production capacity remains the main bottleneck in the construction of global computing infrastructure. Wei revealed that TSMC will not yet be able to meet all customer demand, especially from the United States, even though the company continues to increase its manufacturing capacity in the country over the next few years. “It will take a long time before we can meet all customer demand,” Wei said. Despite facing a surge in demand, TSMC has confirmed it will not raise prices aggressively, as has happened in the memory chip industry. Wei stressed that the company has chosen to maintain long-term business stability. Amid these supply challenges, TSMC remains optimistic about its business performance. Wei reaffirmed a sales growth projection of more than 30% throughout this year, in line with the revised target announced a few weeks ago. TSMC supplies advanced semiconductors to a number of technology giants such as Nvidia and Advanced Micro Devices. The company is also continuing to expand its production capacity outside of Taiwan to meet the needs of the global AI industry. However, this expansion is still considered insufficient. This is because hyperscaler companies are estimated to be pouring investments of up to US$725 billion into AI development this year. As part of its expansion plans in the United States, TSMC is targeting the construction of at least four additional chip factories beyond the six facilities previously announced. The project is part of US-Taiwan trade cooperation, with an investment value that has reached US$165 billion. The move is estimated to require additional capital of around US$100 billion. Wei added that two parcels of land that TSMC has acquired in Arizona are sufficient to meet the company’s expansion needs for the next decade. Previously in April, TSMC also raised its annual sales projection and indicated that the company’s capital expenditure could potentially approach the upper limit of its set target, which is up to US$56 billion.